Hoffman officials hit with Sears questions; Sears emails employees

The phones continually rang Monday with callers asking Hoffman Estates officials a bevy of questions regarding Sears Holdings Corp.'s potential departure from the village.

Mayor William McLeod said much of the questions centered around the Springfield legislation that would allow Hoffman Estates to continue to offer tax incentives to Sears, keeping the company in the village 15 more years. Gov. Pat Quinn on Monday said he'd work with Sears to ensure it remained in Illinois.

“That's a good sign,” McLeod said after Monday night's village board meeting.

McLeod said he and other officials met with Quinn three weeks ago to talk about Sears.

Meanwhile, Sears sent out an email Monday afternoon to some employees about a possible move. The message stressed no decision has been made, but the company would be “doing our due diligence to determine our options both locally and farther away.”

Sears executives reportedly have traveled to New Jersey, North Carolina, Tennessee and Texas. The email stated some officials from those states “have reached out to us in recognition that the business climate in Illinois is becoming increasingly unfriendly to companies such as ours.”

The message asks employees to ask elected officials to extend the deal, as the company hasn't received “any assurances that it will be renewed.”

State legislators will convene this afternoon in Springfield. Even though House Bill 3435 — which would keep Sears in Hoffman Estates — was introduced in February, many lawmakers haven't read through the measure. The existing incentive deal expires in 2012, so lawmakers have the next two sessions to take action.

The state gave Sears its own incentive package in 1989, when Sears threatened to move to North Carolina. It's unclear what kind of package the state could offer in addition to extending Hoffman Estates' own offer.

State Rep. Fred Crespo, the Hoffman Estates Democrat representing the 44th District, co-sponsored the bill. Even though he's a former Hoffman Estates village trustee, Crespo said the company's value is regional. A report commissioned by Sears states tax revenues in Illinois would decline by $130.7 million if Sears left for another state. The bill would also guarantee 4,000 jobs in Hoffman Estates.

Crespo said he hasn't able to measure the bill's chances as most of his colleagues remain focused on adopting a state budget. Crespo did note Friday's announcement by Quinn that Motorola Mobility would receive a $100 million package to stay in Libertyville.

“At what point do we stop giving incentives?” Crespo said. “It's like anything else: You do a cost-benefit analysis.”

Extending the deal would cost some taxing bodies money. Carpentersville-based Community Unit District 300 stands to lose the most funding. Officials in that community will meet Thursday at village hall.